Monday markets
After some pressure last week, the market began the new week on a brighter note.
“After a huge break in CME cattle futures last week, this week has begun with a small rally, putting on pause the shake out as the market seeks some equilibrium,” wrote Cassie Fish, market analyst, in The Beef.
Live cattle futures were higher, up $1.10 to $201.87 on the February contract and up $1.35 to $198.12 on the April contract.
Cash trade for the day was about 100 head. There was no market trend noted. On the formula side, a total of 22,900 head averaging 946 lbs. averaged $333.68.
“It’s still too early in the week for any cash cattle business to have developed, but with packers having to buy cattle cheaper last week, they’ll likely fight tooth and nail to keep the cash market’s trend headed in the same direction this week,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Cash trade for the week ending Feb. 9 totaled 72,948 head. Live steers averaged $207.19, and dressed steers averaged $327.19.
“This is the first time in 11 weeks that negotiated fed cattle prices were lower than the prior week,” Fish said.
Slaughter for the day is estimated at 100,000 head, compared to 115,000 head a week earlier. Total slaughter for last week is expected at 584,000 head.
“Packers have shaved slaughter to stop margins, which are over $100 per head, from worsening even further, Fish said. “Last week’s 584k head cattle slaughter is expected to be followed by this week’s 575k to 580k head. A year ago this week’s slaughter was 607k head.”
Boxed beef prices were higher on 83 loads. The Choice cutout gained $1.63 to close at $323.50, and the Select cutout gained $1.02 to close at $313.92.
Feeder cattle
Feeder cattle futures were several dollars higher. The March contract gained $3.22 to close at $268.12, and the April contract gained $2.95 to close at $267.77.
The CME Feeder Cattle Index lost $2.05 to close at $275.59.
Corn futures were higher, up 4 cents apiece on the March and May contracts, closing at $4.91 and $5.04, respectively.
“Yes, the corn complex is fronting a modest rally this morning as well, but for the time being, the live cattle market’s support seems to be outweighing any concern about the corn market’s higher front,” Stewart said.
Missouri: Joplin Regional Stockyards in Carthage sold 7,000 head on Monday. Compared to a week earlier, feeder steers and heifers sold from $5 higher to $8 lower. Benchmark steers averaging 772 lbs. sold from $266-278, averaging $269.24.
Oklahoma: Oklahoma National Stockyards in Oklahoma City sold 4,750 head on Monday. Compared to the previous sale, feeder steers and steer calves sold steady to $5 lower, except 500-600 lbs. sold up to $12 lower. Feeder heifers sold steady to $5 higher. Heifer calves sold $3-6 lower, except 500-600 lbs. sold up to $10 lower. Benchmark steers averaging 772 lbs. sold from $261-278, averaging $269.82. — Anna Miller, WLJ managing editor
